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Job Title : Senior Consultant for Institution Building for the Accelerated Development of Border Areas Reporting to : Task Team Leader Dept/Div : EASIS Appt Type : Short Term Consultant (80 days) Closing date : 19 September 2009 Location : Jakarta, Indonesia Appointment : Local Hire I. Introduction These Terms of Reference set out the background, objectives, scope of services and deliverables of the consultancy services required from the Bappenas/DSF activity Institution Building for the Accelerated Development of Border Areas. Activity summary The consultancy services required will contribute to a wider scope of scope of work to be commissioned under the activity title Institution Building for the Accelerated Development of Border Areas. It is expected that the consultant(s) will start work before an implementing agency is contracted to undertake the bulk of the work. Contracting of the implementing agency will take considerably longer than for the consultant(s) due to World Bank procurement procedures. The consultant(s) will be expected to meet Bappenas deadlines for early deliverables and, also, to lay the groundwork for the wider activity. It is probable and desirable that there will be a cross-over period between the contract for the consultant(s) and the contract for the implementing agency. Both will be expected to coordinate as appropriate. When reference is made to activity in the context of this ToR this refers to the full scope of the activity which encompasses both the scope of services for the consultant(s) as well as the implementing agency. This is to ensure that the consultant(s) fully understands how the consultancy services requested fit into the wider activity. This activity supports the Government of Indonesia s intention to accelerate the social and economic development of border areas and thereby - at the same time - to contribute to the enhancement of border security. To help bring this about, support is provided to Bappenas to improve its capacity for data collection and analysis and cross-ministerial policy formulation. Support to MoHA is designed to strengthen government institutions at all levels that are responsible for providing management and development support to border areas; and a sample of service providers. Baseline data on development outcomes in border areas will be gathered and used by government as a basis for measuring progress in development over the course of the next five years (during the implementation of the Medium-term Development Plan 2010-2014). Policy reformulations will seek to improve service delivery and economic development in border areas, and through this to enhance border security. Institutional strengthening will include developing the capabilities of the newly-established Agency for the Management of Border Areas, at national and regional levels. The outputs from the consultancy services described in this ToR will primarily be of use to Bappenas. The DSF The Decentralization Support Facility (DSF) is a government-led multi-donor trust fund whose principal purpose is to support the decentralization agenda of the Government of Indonesia. Within the field of decentralization, the DSF fulfills three principal roles, which are designed to help the Government of Indonesia to: Improve the harmonization, alignment, and effectiveness of development assistance; Inform and thereby improve policy development and implementation; and Build governance capacity, particularly at sub-national levels.

The institutional membership of DSF comprises the National Development Planning Agency (BAPPENAS), the Ministry of Finance, the Ministry of Home Affairs and nine donors: ADB, AusAID, CIDA, DfID, Government of Germany, Government of the Netherlands, UNDP, USAID, and the World Bank. II. Background The approved DSF work plan contains two major activities on border areas based on requests from Bappenas and MoHA: Activity 1.4 on service delivery in border areas and Activity 4.3 on border area development planning. The activities described in this ToR represent the culmination of discussions between Bappenas and MoHA. The activities address the needs and interests of both ministries in relation to the activities described in the DSF Work Plan 2009-2011. The view was taken by both parties that a jointlydesigned Activity Concept Note would lead to better policy formulation and development outcomes for border areas. The activity described herein is designed to support the government to improve border area security through economic development and improved public service delivery. The activity does this by: first, building capacity for data collection and analysis and relevant policy formulation; second, policy development for border area development; third, strengthening the institutions tasked with border area development, notably the national and regional border area development agencies; and fourth, building capacity for improved service delivery agencies in border areas. Indonesia shares land borders with three countries - Malaysia, Papua New Guinea and Timor-Leste. In total, 16 districts/cities in four provinces on three islands (West Kalimantan, East Kalimantan, Papua and East Nusa Tenggara) have land borders with neighboring countries. The Indonesia/Malaysia border has a length of 2,000 km, dividing the island of Kalimantan. The boundary separates the Indonesian provinces of East Kalimantan and West Kalimantan from the Malaysian states of Sarawak and Sabah. Indonesia and PNG have a 760 km border, on the Indonesian side is the province of Papua. Indonesia s third land border runs for 228 km separating West Timor on the Indonesian side and Timor-Leste. Indonesia has sea borders with ten countries - India, Malaysia, Singapore, Thailand, Vietnam, the Philippines, Palau, Australia, Timor-Leste and Papua New Guinea. The Government of Indonesia attaches great importance to the many small islands that make up large parts of its geographical periphery. In all, 92 Indonesian islands have a sea border with a neighboring country. 15 provinces and 134 districts and cities share a land and/or sea border with neighboring countries. Whilst the challenges facing border areas are varied, there are, nevertheless, commonalities. Most regions are relatively poor (in relation to neighboring countries as well as to other regions within Indonesia) and isolated from the main population and economic centres. The borders are porous and difficult to manage, due in part to their lengths and isolation from the main population centres. There is a substantial flow of illegal migrant workers across the borders with Malaysia in particular - including women and girls for domestic services. But there is also trafficking of women and children. There is also extensive illegal logging and trade in illegal logging products, which depletes forest reserves and heightens threats to already endangered species of animals and plants. Since Timor- Leste s independence in 2002, there has been widespread illegal cross border trading. Likewise, Papua s border with PNG has problems with illegal border crossers, separatist elements, other border violations, and border development (Rumley and Minghi, 1991 1 ). In general, border areas are 1 Rumley, D. and Minghi (1991) The Geography of Border Landscapes

characterized by poor infrastructure and weak institutional environments. To date, sub-national governments have not given special attention to the development of sub-districts lying along international borders. For these and a variety of other reasons, including recent diplomatic border disputes, border areas have caught the attention of the executive and legislative branches of government. Many land border crossings do not have the physical and institutional infrastructure normally associated with such crossings, such as customs, immigration, quarantine, and security infrastructure. For example, the Entikong border crossing located in Kabupaten Sanggau, West Kalimantan Province only has quarantine and security infrastructure while Kabupaten Nunukan in East Kalimantan has reasonably good immigration facilities but little else. In the border areas of Kabupaten Sintang, Sambas and Kapuas Hulu in West Kalimantan and Kabupaten Kutai Timur in East Kalimantan there are no facilities whatsoever. According to an agreement with Malayasia reached at the Social Economic Malaysia Indonesia Forum, border crossings in West and East Kalimantan are to be developed gradually. 2 As in other countries, border areas have strategic significance for Indonesia - for economic, social, defense, security, and state unity reasons. The government realizes that many of the problems that arise in border areas are best addressed by improving the social and economic conditions of people living there. It is understood that improving these conditions will benefit both national development and border security. Government has therefore begun to reorient policy towards addressing the economic and social well-being of people living in border areas at the same time as it addresses more conventional security issues. This reorientation is reflected in the government s development plans. The Long-term Development Plan 2005-2025 calls for development across Indonesia that is more even and fair. The Medium term Development Plan (RPJMN) for 2004-2009 establishes the development of border areas as a national priority 3, suggesting that among other things they be seen as economic and trade gateways with neighboring countries. This is partly a reflection of the growing importance of free trade across the ASEAN region. The RPJMN 2010-2014 will set out the ways in which special attention will be given to social and economic development in border areas. It will propose how services will be improved and which institutions will be strengthened and how this will be done. It will also establish an order of priority for the development of border areas in terms of their strategic significance. From an evaluation of all districts and cities carried out in 2008, Bappenas determined there to be 38 districts and cities of strategic importance 16 on land borders and 22 on sea borders. 24 of the 38 are officially classified as less developed districts. A key part of the government s strategy is to examine the prospects for developing national strategic centers of economic activity (PKSN Pusat Kegiatan Strategis Nasional), which are urban areas designated as growth centers to stimulate the economic development of border areas. A key function of the PKSN will be to provide services to cross-border economic activities. For 2010, the first phase of PKSN will target 7 urban centers in Kalimantan, North Sulawesi and Papua 4. Several ministries run dedicated programs for border areas. Bappenas runs programs specifically for border areas through the Directorate of Special Regions and Less Developed Regions under the Deputy for Regional Development and Local Autonomy (Deputi Bidang Pengembangan Regional dan 2 Unpublished paper of Directorate General of General Public Affairs (Ditjen. PUM), Platform Penanganan Permasalahan Perbatasan Antar Negara. 3 Presentation by the Director of Special Regions and Disadvantaged Areas on Preparations for Drafting of the RPJM 2010-2014 made on 27 November 2008. 4 See: Bahan Diskusi: RPJM Pengembangan Kawasan Perbatasan Tahun 2010-2014, Direktorat Kawasan Khusus dan Daerah Tertinggal, Bappenas, Jakarta, 28 November 2008.

Otonomi Daerah). The Ministry of Home Affairs Directorate General for General Public Affairs also has a key role in the development of border areas. Its role includes the coordination and facilitation of actors involved in addressing complex problems, such as border disputes and land demarcation as well as helping provincial and local governments with implementing social and economic development programs. The Ministry for the Development of Disadvantaged Regions has identified 199 disadvantaged districts, 123 of which are located in eastern Indonesia and many of these lie in border areas. This ministry is tasked with formulating policy and coordinating policy implementation for the development of disadvantaged areas. 5 More specifically, the ministry manages assistance programs to local governments in the areas of: local economic development; community empowerment; and rural infrastructure. The ministry runs several programs to develop border areas, including: Support for Poor and Disadvantaged Areas (SPADA); Economic Growth Centers (P4DT); Development of Socioeconomic Institutions (PSE-DT); and Development of Border Areas (P2WP). Given the potential for overlap between less developed areas (daerah tertinggal) and border areas (daerah perbatasan) it is essential that the implementers of this activity work closely with the Ministry for the Development of Disadvantaged Regions, and that they make use of existing studies. Bappenas has collected information from five ministries concerning 36 programs designed specifically for the development of border areas. In the past, the sheer number of ministries and programs supporting border area development has probably diminished the overall effectiveness of the Government s support. It is expected that the next RPJM, together with the implementation of Law 43/2008 on State Territory and the establishment of national and regional agencies to coordinate support, will overcome many of the coordination problems. As a key part of the new orientation of government in relation to border areas, Law 43/2008 mandates the establishment of a national agency (BNPP - Badan Nasional Pengelola Perbatasan) and regional agencies (BPPD - Badan Pengelola Perbatasan Daerah) to manage the development of border areas. The national agency reports to the President and the regional agencies report to regional government heads. The agencies are tasked with determining policies for the development of border areas (e.g. master plan and action plan); designating border regions/areas; determining budget requirements (funded through the state budget); coordinating programs; and the monitoring and evaluation of national government programs. The secretariat of the national agency is housed at MoHA. A supporting Presidential Decree on national and regional agencies has been drafted and is expected to be passed into law soon. Each regional agency will then need to be supported by a local regulation. Several regional agencies are already operational. The draft decree describes the functions of the national agency and lists its members the latter represent thirteen ministries. Law 43/2008 also more clearly defines what regions are to be considered as border areas - by bringing the law in line with Law 26/2007 and Presidential Regulation 26/2008 on spatial planning. Spatial planning laws focus on the district/city as the border region, while Law 43/2008 focuses on the sub-district level within these same districts/cities. The focus in border areas is stipulated as border sub-districts which are to be at the center of renewed development efforts. Bappenas has initially selected 12 provinces: West Kalimantan; East Kalimantan; North Sulawesi; East Nusa Tenggara; Papua; Riau; Riau Islands; West Papua; Maluku; North Maluku; North Sumatera; and Aceh. The Government of Indonesia and the DSF will shortly be implementing several complementary activities that have a bearing on this activity. Two activities are hosted by Bappenas and one by MoHA. The consultant(s)/implementing agency will need to consider carefully how synergies can be 5 See: Presidential Decree 9/2005 and revision 90/2006 (tentang Kedudukan, Tugas, Fungsi, Susunan Organisasi, dan Tata Kerja Kementerian Negara Republik Indonesia)

maximized across the related activities to ensure that maximum impact is achieved. The activities include: Institution building for the integrated national/regional development and spatial planning (Directorate for Spatial Planning and Land Affairs, Bappenas). Capacity building for regional development policy formulation (Directorate for Regional Development, Bappenas). Facilitating implementation of minimum service standards in health for selected regions, including some border areas (West Kalimantan-Kabupaten Sanggau, East Kalimantan, Kabupaten Nunukan. and Kepulauan Riau, Kabupaten Bintan). The World Bank s World Development Report 2009: Reshaping Economic Geography offers insights into the development of border areas. It proposes a policy framework for achieving welfare convergence along with the geographic concentration of economic activity. Likewise, Hon s (2009)6 analysis of areas deemed to be lagging and/or remote has policy implications for border areas. Four classifications of lagging regions are identified: resource-rich-connected to markets; resource richremote regions (e.g. Kalimantan and Papua); resource poor-remote regions (e.g. East Nusa Tenggara); and resource poor-connected regions. The report argues the case for intervention (or nonintervention) and discusses policy options. The report suggests that disparities in economic development may be beneficial and that welfare increases are best promoted in other areas by linking people to existing economic opportunities. Institutions and infrastructure make this possible. Border areas, by definition, face an additional challenge whereby the nearest centers of economic activity may well be on the other side of an international border, thereby limiting (legal) labor mobility. The implementing agency should study both reports and consider their implications for the work required under this activity The government s RPJMN is expected to be approved by the president in December 2009 and input needs to be provided by the end of October 2009. The project described herein will run for 18 months but an interim paper for the RPJMN will need to be written by the end of October 2009. III. Goals and objectives The goal of the activity is to contribute to national development and border security through improved prosperity by accelerating economic and social development and improved service delivery in border areas. The objectives are: Improved institutional capacity for the collection and analysis of data relevant to: economic and social policy development; border area profiling; and monitoring and evaluation of development progress in border areas. Strengthened government capacity for the assessment of existing policy and the reformulation of policies for the acceleration of border area development and the better management of border areas over the next five years (2010-2014). Increased institutional capacity of central and local government agencies to manage border areas and develop border areas especially in integrated sector development. Strengthened institutional capacity to develop a national/regional master plan and national/regional action plans for border area development (including public service delivery and local economic development). IV. Scope of services 6 Hon V (2009). A Framework for Bank Engagement in Lagging Areas. World Bank Group

Criteria for definition of border areas, districts and sub-districts (to be provided to MoHA as input into draft decree). Reference should be made to the definitions stipulated in Law 26/2007 on Spatial Planning and Law 43/2008 on State Territory. Bappenas require this to assist in the targeting of border area development activities. MoHA require this as input for an upcoming draft decree on border areas. The consultant(s) will need to take account of existing definitions and seek to reach agreement with government colleagues on a consolidated list based on agreed criteria. Border area development indicators (in consultation also with Bappenas/MoHA). Bappenas will use the development indicators to monitor the progress of border area development activities throughout the course of the upcoming RPJMN 2010-2014 on an annual basis. The consultant will need to posses the technical capability and experience to make judgments about what types of data are relevant; current data availability; and how best to collect such data. Data will also be used to create profiles for selected border areas including data on settlement patterns and neighboring countries land border areas. The profiles will address selected sectors that reflect government s interests in social and economic development and security. Such data will pertain to, for example: a. Physical infrastructure; b. Energy; c. Social and economic development, including access to markets, possibly in relation to both sides of the border; d. Trade and border crossings (both legal and illegal); e. Government institutional presence and capability; f. Private sector activity; g. Civil society organizations presence, mandates, vitality; h. Population demographics; i. Security and development issues specific to the border area in question. Strategy for integrated national development of border areas. One of the problems with national border area development is that responsibility is split throughout each sector. The Consultant must provide a strategy for integrated border area development across sectors through improved prosperity by accelerating economic (PKSN) and social development and improved service delivery in border areas. Assessment of current national government approaches to border area development and review of international experience in producing and implanting integrated strategies. Input paper for RPJMN 2010-2014. Bappanas require input on border areas for the upcoming RPJMN by October 2009. At commencement of the consultancy the consultant(s) will need to liaise closely with Bappenas to ensure that specific input for the RPJMN required by Bappenas can be delivered to an agreed timeframe. V. Deliverables Criteria for definition of border areas, districts and sub-districts. List of border areas. Border area development indicators Perspective of border area integrated development, successful experience in other countries

Input paper for RPJMN 2010-2014 The timeframe for specific deliverables is to be agreed upon with Bappenas. VI. Personnel requirements Senior consultant: At least a Master s degree, preference given to PhD in a relevant subject. Over ten year s work experience specifically in regional development issues in Indonesia. Preferably some experience specifically in border areas and familiar with developmental challenges within these areas. Substantial knowledge of Government of Indonesia ministries, preferably Bappenas and Ministry of Home Affairs. Knowledge of RPJMN 2004-2009. Preference given to those with a relevant publication history. VII. Client Support The consultant is expected to be able to work under own initiative. A considerable part of the work is expected to be done at the Bappenas office and with BKTRN. Bappenas will be able to provide limited facilities. The DSF has available office space if needed (Indonesia Stock Exchange Building, Tower 1, Floor 17) but cannot provide computers and office supplies. DSF can provide limited support for setting up meetings and giving guidance but Bappenas is the main client and support should be sought from Bappenas in the first place. VIII. Reporting requirements The senior consultant will report to Bappenas and the DSF Executive: HOW TO APPLY This is a local hired position, open for Indonesian nationals only. Please only submit your cover letter, CV, and references (at least three names with full contact details) to: jobsindonesia@worldbank.org. Do not forget to state your name and position applied on the e-mail subject. Deadline of application is 19 September 2009. Late submission will not be considered; hard copy applications and phone inquiries will not be accepted.